Quick answer
Marg Tax Advisors LLP drafts customs show cause notice replies for importers and exporters under Section 28 of the Customs Act, 1962, covering non-levy, short levy and erroneous refund, and under Section 124 where confiscation and penalty are proposed. A reply is typically due within 30 days, addresses each allegation separately, states what is admitted and what is denied, raises a limitation objection where the five-year extended period has been invoked, requests cross-examination under Section 138B where the case rests on a recorded statement, and asks expressly for a personal hearing. The team then argues the reply at that hearing and checks the Record of Personal Hearing before it enters the file.
Marg Tax Advisors LLP drafts and files a customs show cause notice reply for importers and exporters facing a notice under Section 28 of the Customs Act, 1962, alleging short levy, non-levy or an erroneous refund, or under Section 124 where confiscation and penalty are proposed. The reply is where a case is genuinely won or lost; an adjudicating authority decides largely on what is actually on the record, and a reply that is filed late, addresses the allegations only in general terms, or skips the personal hearing leaves very little for an appeal to work with afterward.
Where this page sits
- Our Customs Lawyer in Delhi page covers the full appeal ladder that follows an adjudication order, from the Commissioner (Appeals) through CESTAT and beyond. This page focuses specifically on the reply itself and the adjudication hearing that follows it, which is where most of a customs dispute is actually decided.
What Our Customs Show Cause Notice Reply Team Handles
- Reviewing the notice against the underlying investigation record before drafting a single line of the reply.
- Drafting a point-by-point reply addressing each allegation separately, rather than a general denial.
- Extension requests where more time is genuinely needed to respond within the statutory window.
- Cross-examination requests under Section 138B where the department relies on a statement or a third-party document.
- Representation at the personal hearing and ensuring the Record of Personal Hearing reflects what was actually argued.
- Coordination with our Customs Lawyer in Delhi team on the appeal if the adjudication order does not go a client's way.
Section 28: What a Customs Show Cause Notice Actually Alleges
Section 28 of the Customs Act, 1962 covers duty that was not levied, not paid, short-levied, short-paid or erroneously refunded, and the limitation period that applies depends on why the shortfall happened.
| Basis | What It Means for the Reply |
|---|---|
Ordinary case2 years |
No collusion, wilful misstatement or suppression of facts alleged; the notice has to be issued within two years from the relevant date, and a reply can often focus on whether the shortfall happened at all rather than also having to contest the extended limitation basis |
Collusion, wilful misstatement or suppression5 years |
The limitation period extends to five years from the relevant date, and the reply has to directly contest the factual basis for that allegation, not just the underlying duty shortfall, since accepting the extended limitation basis by default makes the rest of the reply harder to sustain |
Section 28(5) and 28(6) closureEarly exit |
Paying the duty, interest and a reduced penalty within the period the notice allows can close the matter without a full adjudication, which is worth evaluating early rather than only after a reply has already been filed contesting the allegation in full |
The Response Timeline
A customs show cause notice typically allows 30 days to reply, though the exact period is set out in the notice itself and can vary. Missing that window without seeking an extension in writing beforehand risks an ex-parte order, decided without the benefit of a reply on record, which is a difficult position to recover from even on appeal. Where more time is genuinely needed, Marg Tax Advisors requests an extension before the period lapses rather than after.
What a Strong Reply Actually Contains
- Each allegation addressed under its own heading, rather than one general response covering the whole notice.
- A clear statement of which facts are admitted, which are denied, and which need further explanation, rather than leaving that distinction implicit.
- The underlying commercial transaction, supported by contracts, invoices and payment records, set out in sequence rather than referred to only in passing.
- A direct response to any statement the department is relying on, including, where appropriate, a request to cross-examine the person who gave it.
- Valuation or classification points tested against the Customs Valuation Rules, 2007 and the Harmonized System of Nomenclature, not just asserted.
- A limitation objection raised separately where the extended period under Section 28 has been invoked without clear justification.
- An explicit request for a personal hearing, rather than leaving that to be inferred.
Cross-Examination Rights Under Section 138B
Where a show cause notice relies on a statement recorded from an employee, a supplier, or another party during the investigation, Section 138B of the Customs Act, 1962 gives the noticee a right, in defined circumstances, to require that person to be examined before the adjudicating authority and to be cross-examined on the statement. A reply that accepts a relied-upon statement without testing it gives up a point that can genuinely change the outcome, particularly where the statement is the main evidence behind an allegation. Marg Tax Advisors reviews every statement the department cites in a notice specifically to decide whether a cross-examination request is worth making, rather than treating the statement as settled fact because it appears in the notice.
The Personal Hearing and the Record of Personal Hearing
The personal hearing is where the technical and legal points in a reply actually get argued in front of the adjudicating authority, and the Record of Personal Hearing that follows becomes part of what an appellate forum later reviews if the matter is contested further. A hearing where the strongest arguments are made only in the written reply, and not repeated and reinforced at the hearing itself, risks a Record of Personal Hearing that does not reflect the full case. Marg Tax Advisors attends the hearing prepared to argue the reply's strongest points directly, and checks the Record of Personal Hearing afterward for accuracy before it becomes part of the file.
If the Reply Does Not Resolve the Matter
An adjudication order that does not accept the reply's position can be appealed, first to the Commissioner (Appeals) and then to CESTAT, within the timelines the Customs Act sets for each stage. This page stops at the reply and the adjudication hearing, since that is where the factual and evidentiary record an appeal later depends on is actually built.
The appeal ladder
- Our Customs Lawyer in Delhi page covers each appellate stage in full, including the statutory basis for each and CESTAT representation.
- Where the dispute is about declared value or a related party relationship, our Customs Valuation Consultant page covers the valuation and SVB position behind it.
Why a Delhi Based Customs Show Cause Notice Reply Team Matters
Many show cause notices for importers and exporters across North India are adjudicated by authorities based in Delhi, and a personal hearing that comes up on short notice is easier to attend for a team already in the city. Marg Tax Advisors' office in Noida, Delhi NCR keeps that response close to where these hearings are actually held.
Who You'll Work With
Shashank Shekhar Gupta
Founder, Chartered Accountant and Lawyer
Customs show cause notice replies at Marg Tax Advisors are drafted under the direction of Shashank Shekhar Gupta, founder of the firm, a Chartered Accountant and a lawyer whose practice areas include customs law directly.